The Dow Jones fell sharply for the third time in five days on Thursday, plummeting 1,033 points.
It isn’t just the Dow. S&P 500 fell 100 points, and Nasdaq Composite dropped 274 points. The Dow reached a record-breaking loss of 1,175 points on Monday, and by Friday it had shed about 2,700 points. Since the market is down 10 percent from its previous high, it’s considered a stock market correction.
Other than a concern about the Fed raising interest rates faster than expected because of the possibility of increased inflation, many experts believe the declines are not a cause for concern. Corrections are nothing new in the stock market, and they’re sometimes welcomed.
“I’m not worried, but I have started looking at my financial portfolio,” Jim Rounds from Rounds Consulting Group says. “I think this is a correction. I don’t know if I should be worried down the road, but I’m not worried right now.”
Rounds believes the Dow could fall again in the next week, only for it to shoot back up a couple of days later. He predicts the market will continue this up-and-down game until it eventually stabilizes.
“I look at it like, did what happen seem reasonable?” Rounds says. “The stock market has been overvalued for a very long time. What happens makes sense so far. A minor correction, it was overdue. What’s happening makes logical sense based on how things work.”
